Where is the US economy headed?

Interesting. Consumer confidence slumped in the most recent survey but, as you noted, the hotel/tourism industry is somewhat bullish for the upcoming season. Much of that must be due to the sharp decline (about 20%) in the price of oil. I think we will see it decline in the U.S. another 10% to around $80/bbl.
Price at the pump for gas here is now $3.20/gal which is probably disappointing to some of the anti-Obama forces.

We're still paying over $4/gallon here in Silicon Valley. My tank is almost empty, but I'm hoping gas prices will drop in a day or two.

FWIW, as a barometer of some of the dynamic forces in the local economy, it's $3.33 per gallon in Sarasota at it's lowest. At the same time, it's $3.43 on average for FL State. One week ago it was a nickel per gallon higher and a month ago it was 33 cents higher.

When my file got to the size of the encyclopedia britanica my doctor did start putting everything on computers.

Let me guess: Fibromyalgia?

Here's some good news for the American economy. As more people refinance their homes, they free up cash that will increase consumer spending. It's only one of many factors that our economy needs in order to maintain a healthy growth.

http://www.marketwatch.com/story/refis-double-with-expanded-obama-plan-regulator-2012-06-01?siteid=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A%20marketwatch%2Fmarketpu

The DOW as of 11:18AM PST is at DJIA
12,124.62 -268.83 -2.17%

I've stated some weeks ago that the DOW will loose 300 points as a regular cycle of the market, and the recovery will take longer. I believe this is happening now.

Yes--but consumer spending has to translate into profits which is getting more difficult as competition increases. Banks are eager to lend to people they think will make profits. That they are not lending is a sign that such people are fewer.

If somebody walked into a bank and demonstrated how to make a car run on tap water he would be asked how much he thought he needed. Opening a flower shop just reduces the turnover of all flower shops unless the demand for flowers is stimulated. And stimulating it costs money.

Demand is a function of confidence as much as more money circulating is.

The DOW is absentee investment with future profits in mind.

Yet another mediocre month for employment. Unemployment is unchanged, while the employment-to population ratio is zigging up a little after zagging down a little last month. So where is the US economy headed? As far as jobs are concerned, nowhere.

I blame the Fed for much of this. Assholes are sitting on their thumbs, worried about inflation while the country's employment is going down the drain around them.

Cycloptichorn

The Feds really don't know what they are doing. In their fear of inflation, they're keeping interest rates low for themselves, the government, and the banks, but the consumers are paying higher fees and interest. There's no cure for stupid!

30-year mortgage loans are going for under 4%, and interest earnings on 10-year plus bonds are earning less than 2% - while inflation eats up the interest.

When do they they expect inflation to increase beyond our <2% GDP growth rate?

One doesn't need to be a rocket scientist to figure out that what little money the 99% has isn't enough to create inflation any time soon. My guess? Over 10-years from now! All while our economy sputters lower into another recession.

Dear Down Thumber,

I'm sorry that you find my post offensive. It can only be because you are a big softee baby type who only approves of comforts dipped in syrup.

There was a story here earlier in the week that entrance into Harvard was determined by which students are prepared to borrow the most money on the bet that the qualification they will automatically receive will be a good investment.

If this is true, as I expect it is, given the Ponzification of Everything not excluding the Universe, the Origins of Species, Salvation and the acquiesence of ladies, and that the source was American, it means that current administrations of institutions of the Higher Learning are exploiting the good name and reputation of educators of previous times. It also means that those taking the bet are the stupidest section of the population.

Tony Blair said the same thing about our universities about ten years ago when tuition fees were first introduced to avoid the taxpayer having to fund such idiotic nonsense not unlike when commissions in the military could be purchased.

I'm mystified as to why the voters are looking for Obama to increase jobs when the GOP does everything to vote "No" on most legislation brought forward.

Doesn't the American voters get it? It takes congress to compromise to pass legislation in Washington DC.

What are they expecting from Obama without any cooperation from congress?

I'm not surprised to hear that, but I don't think there's much more the Fed can achieve at this point.

• Nominal interest rates are already at zero, and the bond market expects them to stay that way for another three years.
  
• Given the zero-lower-bound for nominal interest rates, the Fed would accomplish practically nothing by printing more money. At zero interest, cash beats bonds as a store of value, and people will just hoard cash instead of investing it.

The only thing that would achieve something at this point is adequate stimulus spending. We didn't get it in the first place because the Obama administration was oblivious to the true extent of the problem. And we won't be getting it now because of the House Republicans' scorched-Earth strategy.

Had to fill my tank today, because we're driving about 100 miles to attend my brother and sister-in-law's 50th wedding anniv tomorrow. Over $50 bucks for the fill-up, because I must use premium @ $3.50/gallon.

Leadership.

That's what successful presidents do.

You crow about Clinton's accomplishments when he was faced with an entirely GOP congress.

Somehow he managed to get things done.

Sure, Clinton (between headjobs) allowed the deregulation of the Glass-Stegall act, which, effectively, was the cause of the GFC.

Nice work, if you can get it. (the fellatio, I mean).

I just up-thumbed the whole page list.

Not sure what that's all about, but it's not a big stretch to do. HTH.

Of course the AVs get it. They have no choice. They are the ones "to whom it is done". How can they avoid getting it?

We are getting Her Majesty's Golden Jubilee festivities. Four days off, bunting, flotillas up the Thames, street parties, boozing, shagging, 41 gun salutes, Cliff Richard singing in the street outside Buckingham Palace, the Derby, fly-pasts, and For She's a Jolly Good Fellow. Fireworks in the dark.

We get it with style. I bet Cliff doesn't sing She's a Devil Woman.

Fall out the officers. (That's a Desert Rat joke.)